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MITIE Group sees full-year earnings in line with management expectations

Last updated: 08:28 29 Jan 2010 GMT, First published: 09:28 29 Jan 2010 GMT

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Outsourcing and asset management business MITIE Group PLC (LSE: MTO) said it has performed well since 1 October 2009 and has had a good start to the second half of the year. Earnings continue to grow in line with management expectations and it is confident that earnings for the full year will also meet management expectations.

In an interim management statement, it said that it has successfully retained and expanded a number of existing contracts and has secured new work across all three divisions since it reported interim results at the end of November 2009. 

MITIE is seeing a high level of facilities and property management opportunities and the trend towards multiple service and facilities management contracts continues. The relatively small parts of the business exposed tothe new build and fit-out elements of the construction industry have seen no further deterioration in market conditions but are yet to see sustained evidence of recovery and it is still experiencing slippage on some projects, it said.

The integration of Dalkia FM, bought in August 2009, is going well and is  on track to deliver the projected synergies. The acquisition of Environmental Property Services Ltd (EPS) in November has enhanced MITIE’s scale in the social housing market and it is in the process of integrating the business with the social housing operations in the Property Management division.

MITIE benefits from a strong balance sheet and committed funding lines of £230.0 million in place until January 2012, thus giving it the capacity to take advantage of value creating opportunities as they arise.

“2010 should provide considerable opportunities for MITIE. Private sector clients are consolidating contracts as they seek to obtain cost and carbon efficiencies. We also expect the public sector to increase levels of outsourcing in response to budgetary pressures although the timing of such activity is currently difficult to predict. The group is well placed for the future,” it added.

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